Paragon Mortgages has welcomed Gordon Brown's tax incentive for investors wanting to buy derelict pro...
Following the announcement of a tax break for investors and developers, Paragon is launching 'Buy and Refurbish to Let'.
Paragon says the concept "will be popular with investment landlords wanting to take advantage of both the 100% capital allowances, for conversions of commercial space to residential use and the new 5% VAT rate on the costs of conversion and renovation".
The package is flexible and allows investors to switch to a buy-to-let mortgage once the property reaches a stage where tenants can move in. Paragon estimates this to be within a year of the property purchase.
Prospective landlords should note they need to provide 30% of the original purchase price with Paragon providing the rest and the revenue to make refurbishment possible.
Paragon managing director John Heron said: "Our customers have told us of their need for a 'buy, develop and refurbish' package to take advantage of the growth in the lettings market.
"Hopefully this special package for investors in the private sector, together with the new tax allowances and VAT rates will bring more of the existing housing stock into use. We have take a lead from the government and are following its drive to improve the housing stock generally, and the quality of the private rented sector in particular."
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From 1 March